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Pakistani banks agreed to develop a blockchain-based KYC system

Pakistan has joined other countries in the race to develop a central bank digital currency (CBDC) and recently signed new laws to ensure the launch of a CBDC by 2025.

On March 2nd 2023, The Pakistan Banks Association (PBA), a group of 31 traditional banks operating in Pakistan , has signed a project agreement to develop Pakistan's first national blockchain-based eKYC banking platform. The move is aimed at strengthening anti-money laundering capabilities while combating the financing of terrorism, an initiative led by the State Bank of Pakistan (SBP).

Member banks include international institutions such as Industrial and Commercial Bank of China, Citibank and Deutsche Bank. In addition, the blockchain platform will improve operational efficiency, primarily aimed at improving the customer experience during onboarding. Avanza Group has been tasked with developing a blockchain-based eKYC platform called "Consonance" that will be used by member banks to standardize and exchange customer data through a decentralized and self-regulating network. However, customer data will be shared based on consent. SPB will issue licenses to electronic money institutions to issue CBDC .

SBP Deputy Governor Jameel Ahmad said:

These landmark regulations are testament to SBP's commitment to openness, technology adoption and digitization of our financial system.


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